ABE Weekly: Equities get the boot as billions flow into fixed income
Australian Bond Exchange Weekly Update Friday 14th July 2023 Key Points Billions of dollars are flowing into fixed income (and billions are being pulled from equities), as major money movers including super fund managers and Wall Street veterans reallocate assets in response to rising cash rates and high inflation. ANZ Consumer Confidence Report shows homeowners […]
Virgin Airlines’ bond highlights why rigorous selection is so vital
Buyer beware: why it pays to be cautious when selecting bonds for a portfolio The losses suffered by Australian investors in a bond issued by Virgin Airlines underlines the importance of conducting extensive due diligence before investing in any issue. The misfortunes of investors in a bond issued by Virgin Airlines in Australia in 2019 […]
Staying Ahead of the Curve: How Technology is changing Corporate Bond Investing
Why technological advances could prove a game changer for corporate bond investors Traditionally resistant to change, the corporate bond market is now embracing new technologies that should make it easier for advisers to better serve their clients. The pace of technological progress is accelerating, and profound developments have already taken place in financial services. The […]
Why Advisers should choose the Australian Bond Exchange
Why Advisers should choose the Australian Bond Exchange Building a balanced, diversified portfolio of corporate bonds can help your clients receive a regular, stable income. The Australian Bond Exchange can help you overcome the challenges associated with this process. On our website you can find numerous articles outlining the advantages of including corporate bonds in […]
ABE Weekly: In the ‘Land of Confusion’ bonds could be the solution
Australian Bond Exchange Weekly Update Friday 7th July 2023 Key Points RBA pauses one of the most aggressive hiking cycles in history, as supply and demand begin to balance out. Now sitting at 4.1%, it is the highest RBA cash rate we have seen in 11 years. An uncertain economic outlook and an inability to […]
ABE Weekly: Investors find opportunities in higher yields despite sticky inflation.
Australian Bond Exchange Weekly Update Friday 30th June 2023 Key Points Leaders of central banks, economic analysts and top journalists discussed the state of global monetary policy and the ‘volatile inflation environment’ wreaking havoc on markets at the ECB Central Banking Forum 2023. Slow growth, high inflation, rising wages, low unemployment and high interest rates […]
What is bond duration and why do investors need to understand it?
Understanding bond duration and its impact on portfolio risk Duration is a key concept investors need to understand when investing in corporate bonds and building a portfolio. Quite simply, duration measures the sensitivity of a bond to a change in interest rates. It is measured in years and will vary according to the bond’s maturity […]
ABE Weekly – Interest rates rising, but peak still a far climb
Australian Bond Exchange Weekly Update Friday 23rd June 2023 Key Points Bank of England hikes the cash rate half a percentage point to 5%, to fight sticky 8.7% inflation recorded in the year to April and in the year to May. RBA releases the minutes from the June monetary policy meeting, with upside risks to […]
The impact of interest rates on corporate bonds: what financial advisers need to know
How interest rates exert a key influence over bond prices and their yields Once a corporate bond is issued, it can be traded on financial markets. Just like equities, bonds will see their prices fluctuate – although bond prices tend to be far more stable than those of equities. A number of factors affect the […]
ABE Weekly – Wall Street veteran latest to jump on the bondwagon
Australian Bond Exchange Weekly Update Friday 16th June 2023 Key Points Unemployment drops to 3.6%, despite the RBA’s attempt to soften the market by increasing the cash rate 400bps since last year. Another hike is now predicted for July. Consumer sentiment at “recession lows” as Australians struggle with a cost-of-living crisis, further complicated by a […]